Oman's Salalah Free Zone attracts OMR 4.6bn investment by June 2024

MUSCAT: The Salalah Free Zone of Oman has witnessed significant investment growth, with a cumulative total exceeding OMR 4.6 billion by the end of June 2024.

“The first half of the year saw an investment volume of over OMR 68 million,” according to Dr Ali bin Mohammed Tabuk, the CEO of The Salalah Free Zone.

The Salalah Free Zone currently has 143 companies and 64 operational projects, with industrial projects accounting for 57%, logistics projects 15%, and commercial projects 28%. The zone’s strategic location and multiple incentives have made it an attractive destination for investors.

Dr Ali bin Mohammed Tabuk informed the media that the region has great appeal, citing its ability to shorten distances, reduce time and costs, and provide access to key markets in the Middle East, Indian subcontinent, and East Africa.

Countries develop free economic zones (FEZs) to stimulate economic growth and development by offering businesses a range of incentives, such as tax exemptions, streamlined customs procedures, and reduced regulatory burdens. The FEZs attract both domestic and foreign investments and foster an environment conducive to innovation and efficiency, enabling companies to operate at lower costs and with greater flexibility.

The Salalah Free Zone attracted 13 new projects in the first six months of 2024, including those related to frankincense derivatives, packaging, air conditioning manufacturing, and textile production.

The existing projects in the zone include petrochemical and mineral processing, food and pharmaceutical manufacturing, logistics, and storage, according to Dr Ali bin Mohammed Tabuk. The zone’s growing activities are owing to its proximity to the Port of Salalah, one of the region’s most important ports.

The Salalah Free Zone offers a range of services and facilities to support investors including land and warehouse leasing, one-stop services, and the ‘Invest Easy’ platform, he said. The zone, along with other free and economic zones under the Asyad Group, plays a crucial role in attracting foreign direct investment and providing access to international markets.